Strategic Planning Advertising Principles and Practices

Repositioning Kodak for the Digital Age \ Kodak’s specialty was making film; it defined their brand. The “Gallery” campaign emphasized that Kodak is about pictures, no matter what the technology. 7-2Prentice Hall, © 2009

Strategic Planning from Top to Bottom The business plan and marketing plan provide direction for advertising planning and other areas. 7-3Prentice Hall, © 2009

Strategic Planning: the Business Plan May cover an SBU (strategic business unit), which is a line of products or all offerings of a brand. –The objective is profit or Return-on-Investment (ROI). –ROI is revenue earned above the amount invested. –Business planning starts with a a mission statement; an expression of goals and policies. 7-4Prentice Hall, © 2009

Strategic Planning: the Marketing Plan Developed for a brand or product line, usually annually. Parallels the business strategic plan and contains many of the same components. A market situation analysis assesses the environment affecting marketing. Objectives are focused on sales levels and share of market. 7-5Prentice Hall, © 2009

7-6 Typical Campaign Plan Outline I.Situation analysis II.Key strategic decisions III.Media strategy IV.Message strategy V.Other tools VI.Campaign management See pg. 197 for detail. A Campaign Plan More tightly focused on solving a particular problem in a particular time frame. Includes a variety of messages carried in different media and sometimes targeted to different audiences.

Prentice Hall, © Campaign Plan: Situation Analysis Backgrounding –Research and review the state of the business that is relevant to the brand –Identify the problem SWOT Analysis –Strengths, Weaknesses, Opportunities, Threats –Address weaknesses and threats; leverage the strengths and opportunities Key problems and opportunities

Prentice Hall, © Campaign Plan: Objectives Objective—formal goal statement outlining what the message is supposed to achieve and how it will be measured. Some objectives are tightly focused on a single effect; others require a complex set of effects. Advertising is effective if it creates an impression, influences people to respond, and separates the brand from the competition.

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7-10 Campaign Plan: Objectives Objectives must be measurable so advertisers know if the campaign or advertising is effective. Five requirements of a measurable objective: –Specific effect that’s measurable –A time frame –A baseline (where we are, where we begin) –The goal (realistic estimate of change to be created) –Percentage change (subtract the baseline from the goal; divide the difference by the baseline)

Prentice Hall, © Campaign Plan: Targeting Marketing communications strategy is based on accurately targeting an audience that will respond to a particular message. Targeting is identifying and profiling an audience. Targeting is also getting inside the heads and hearts of the audience to find out what kind of message will motivate them.

Prentice Hall, © Campaign Plan: Positioning A brand’s position is its place in consumers’ minds where the product or brand stands in comparison to the competition. The competitive situation: –Competitive advantage –Differentiation Two factors used to locate the brand position: –Psychological factors Volvo = safety, Coke = authentic, Hallmark = quality –Consumer decision factors Planners use perceptual mapping to plot competitors on a matrix

Prentice Hall, © A Perceptual Map for Cars

Prentice Hall, © Brand Communication Strategy Brand identity –Must be distinctive and familiar in terms of name, logo, colors, typeface, design, and slogan. Brand personality –Human characteristics like loving, trustworthy, sophisticated. Brand position –The soul or essence of the brand; it stands for something that matters to consumers. Brand image –The mental image consumers construct for a product based on symbols and associations that customer link to a brand. Brand promise and brand preference –Believing the promise that a brand will meet your expectations leads to brand preference. Brand loyalty –A connection built over time that leads to repeat purchases.

Prentice Hall, © Campaign Implementation and Management: Budgeting Historical Method –Last year’s budget plus inflation; not based on goals Objective-Task Method –What do we want to do and what will it cost? –Based on goals Percentage-of-Sales Method –Compares total sales with total advertising to get ratio Competitive Budgets –Use competitors’ budgets as benchmarks and relates to the product’s share of market All you can afford –Whatever is left over; not a strategic approach

Prentice Hall, © Account Planning Account planning is the research and analysis process used to gain knowledge of the consumer and uncover key consumer insights about how people relate to a brand or product. An account planner is the agency person who uses a disciplined system to research a brand and its consumer relationships to devise messages to effectively address consumer needs and wants. Principle: The account manager is seen as the voice of the client, and the account planner is seen as the voice of the consumer.

Prentice Hall, © Account Planning: Research Account planners use consumer research to get inside the target’s heads, hearts and lives. The key to effective advertising is a powerful consumer insight. Account planners are information integrators who bring all the info together; and synthesizers who express what it all means in one simple statement.

Prentice Hall, © Insight Mining Finding the “a-ha” in a stack of research reports, data, and transcripts is the greatest challenge for an account planner. Account planners use strategic and critical thinking to interpret consumer research to find relevant consumer insights that explain why consumers will care about a brand message.

Prentice Hall, © Differences in IMC Planning Stakeholders –The target market in IMC is not just consumers, it’s anyone who has a stake in the company’s success (employees, shareholders). Contact points (touch points) –IMC maximizes all contacts stakeholders have with the brand; where a message is delivered. IMC objectives –IMC uses interrelated objectives with specific strategies for different tools (e.g., PR to announce, sales promotion to drive action).

Prentice Hall, © Marketing Communication AreaTypical Objectives Public RelationsAnnounce news; affect attitudes and opinions; maximize credibility and likability; create and improve stakeholder relationships Consumer Sales Stimulate behavior; generate immediate response; intensify needs, Promotionwants, and motivations; reward behavior; stimulate involvement and relevance; create pull through the channel Trade SalesBuild industry acceptance; push through the channel; motivate Promotioncooperation; energize sales force, dealers, distributors Point-of-PurchaseIncrease immediate sales; attract attention at decision point; create interest; stimulate urgency; encourage trial and impulse purchasing Direct MarketingStimulate sale; create personal interest and relevance; provide information; create acceptance, conviction Sponsorship andBuild awareness; create brand experience, participation, interaction, Eventsinvolvement; create excitement PackagingIncrease sales; attract attention at selection point; deliver product information; create brand reminder SpecialtiesReinforce brand identity; continuous brand reminder; reinforce satisfaction; encourage repeat purchase Table 7.3Marketing Communication Objectives

Prentice Hall, © Synergy in IMC Planning IMC planning involves many messages delivered through multiple media at many different contact points. The planner’s biggest concern is creating consistent messages. Synergy means that the brand impact of all messages together is greater than what any one type of message could deliver. Synergy requires cross-functional planning— everyone involved in creating and delivering messages should be involved in planning to ensure consistency.

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